Renaissance High Interest Savings Account
My investment broker just recommended this account to me, they pay 1.05%. But I don't know much about it yet, but since it's a "High Interest Savings Account" I thought I'd post it here and let you all know about it as another option.
It's offered by Canadian Imperial Bank of Commerce
This looks like a gimmick. If you have any uninvested cash sitting in a brokerage account (most brokerage cash accounts pay zero interest), what they are saying is "transfer your uninvested cash to us and we'll give you 1.05% interest on it". Well, that's nice, but you can easily transfer your uninvested cash to your bank chequing account (provided it's not registered (i.e. RRSP) cash), and from there you can transfer it to a high interest savings account of your choice (like People's Trust currently paying at 2.25% or Canadian Tire paying at 2.00%). Many people have pulled their investments out of the market and are waiting for what they think is the best time to get back in. In the meantime, brokers are making a killing off of all this uninvested cash that they don't have to pay interest on, but they know that eventually their customers will get wise and move their cash out to a high-interest savings account or other CICD-insured savings vehicle, hence offers like "Renaissance Savings". If you want my advice, invest your money in a money market fund, or move it out of your brokerage account into a high interest savings account. Either option is better than Renaissance. It's also somewhat interesting that CIBC is behind all this, especially considering that PC Financial is going through hard times with record-low interest rates and cash flowing out of their coffers like water going over niagara falls.
November 8, 2009
Yields in the marketplace are a function of risk. Ally pays 2% because they techically have a junk bond status BB (low) by DBRS http://www.dbrs.com/issuer/160.....da-limited
The major Banks in Canada are AA. If you place your money with a lower tier institution that has increased risk of default, you should be paid accordingly for taking on that additional risk. The Renaissance High Int Savings Fund is a good option for sure, and it keeps you in the higher echelon or credit ratings. So are GIC's if you have specific timelines for liquidity and you can wait for maturity. Credit Unions now offer UNLIMITED coverage! There's also very short term bonds that offer good yields. But to be honest, unless the amounts are meaningful (+$50,000), small cash balances arent worth monkeying around for an extra few bucks. $10,000 at 1.25% over 365 days = roughly 34 cents a day. You are better off spending your time collecting cans, its a better return.
December 12, 2009
You are correct, Rory, and yes Ally Credit Canada Ltd. is a subsidiary of Ally Financial Inc., which also owns ResMor Trust Company operating as Ally Canada. Nonetheless, so long as people keep within their CDIC limits ($100,000 per unique depositor - and your RRSP account is separate limits from your individual non-registered account; however, your CDIC limit for TFSA is included in your non-registered account limits - details at cdic.ca), they will be fine. Once you exceed those limits with Ally, your next best bet, I would say would be (in this order):
1. Canadian Direct Financial, the virtual banking operation of Canadian Western Bank
2. Bridgewater Bank
3. Canadian Tire Bank
4. Achieva Financial (Cambrian Credit Union) or Outlook Financial (Assiniboine Credit Union) [tie]
5. AcceleRate Financial (Crosstown Civic Credit Union) or Hubert Financial (Sunova Credit Union) [tie]
I didn't include ING Direct, PC Financial or HSBC because their rates on savings accounts simply aren't high enough but would recommend them for day-to-day banking (in that order) or if you've used up your CDIC and CUDIC (or variant) limits at the above institutions. I also have not included Westoba Credit Union's MAXA Financial as I don't like their website - it's too cheap looking and they seem to small-town cheap, to paraphrase the Right Hon. Jean Chretien.
September 11, 2010
Just to clarify, Doug...TFSA's actually are separate from non-registered savings and RRSPs according to the CDIC website: http://www.cdic.ca/e/calculate.....ulate.html, meaning that you can have up to $100,000 in each of the three types of accounts at any one institution and will be fully insured up to a total of $300,000. I found that webpage after using the "Deposit Insurance Calculator", which confirmed that the three are separate after I plugged in the numbers.
However, it's interesting to note that if you follow the TFSA link from the main page (under the "What's Covered, What's Not?" tab at the top) the little blurb on the bottom right explicitly stating that TFSAs are separate is completely missing...compare: http://www.cdic.ca/e/coveredor.....vered.html. So I can see why this may have led to some confusion.
Anyway, just thought I'd pass that on so that nobody here will be worried about exceeding the coverage limit.
For people using discount trading accounts for TFSA and RRSPs, it is a drag that we cant access the same great rates as outside our registered trading accounts. I always have to switch between Ren High Int and Manulife as they constantly keep playing the game of increasing and decreasing their rates every 6 months or so.
Now Manulife High Interest is highest. 1.5% Code is MIP 710. I can even buy Ally 1 yr GIC in my BMO RRSP dicount tradeing acct but interest rate is less than 2 percent that Ally offers to me direct.
Both manulife and Renaissance have another higher interst account for outside your registered accounts, and again for outside your trading accounts. Inside my RRSP discount trading account they are still better than any 1 year GIC or Moneymkt funds offered inside my RRSP disc trading account.
September 30, 2017
Looks like the ATL5500 in USD now also CDIC eligible ... I understand the combined balance remains $100K coverage if I also hold ATL5000 (CAD) in the same brokerage account. As these HISA are offered by CIBC, does that mean I also need to include all my CIBC bank account balances in that $100K per FI per individual per account category ?
September 24, 2019
Scone: I think Peoples HISA is at 1.8% not 2.25%
This is what is covered under CDIC
CDIC covers up to $100K (principle plus interest) per institution for each of the following:
- Savings in one name
- Joint deposits
- Savings held in TRUST for another person
- Savings in RRSP's
- Savings in RRIF's
- Savings in TFSA's
- Money held for paying realty taxes on mortgaged properties.
I believe a couple of years ago that TFSA's were combined with all registered accounts but now they are separate
September 24, 2019
December 18, 2008
December 12, 2009
September 30, 2017
October 29, 2017
January 9, 2011
I'm actually glad this subject got resurrected, because savings rates on cash are so bad compared to what is routinely available outside Investment Accounts (and always has been so), lots of people are trying to figure where else to go.
So if you had a broker account at, for example, CIBC Investor's Edge, what alternative to ATL5000 (CIBC owned Renaissance Cdn. Savings) @ 0.3% would you look at to preserve capital that is in cash, and do better in terms of return? Maybe there is no answer, they "gotcha"? People with RRIFs in particular generally keep some $ in cash for the future withdrawals, rather than put everything in stocks and bonds.
The main accomplishment of almost all organized protests is to
annoy people who are not in them.